OPEC+ will continue negotiations on 10 April to reach consensus with Mexico

The discussion will be held as part of the G20 negotiations.

OPEC+ will continue negotiations on 10 April to reach consensus with Mexico

OPEC+ Ministers expect on Friday to conclude negotiations on a 10m bps cut, which began on April 9, to gain the support of Mexico, which has not accepted the terms proposed to it. This was stated in the communiqué of the organization, issued after the online meeting.

“The agreement reached depends on Mexico’s agreement to accept the terms specified in the annex”, –  OPEC said in its final statement. The Secretariat also encourages other producing countries to contribute to market stabilization.

“OPEC+ member countries will gather on June 10 through a webinar to identify further actions to stabilize the market”, –  it said.

Discussion in Mexico of its proposed terms is scheduled for the G20 negotiations, which are scheduled for Friday at 15:00 Moscow time.

Mexican Energy Minister Rocio Nale said on Twitter after she left the OPEC+ virtual meeting on Thursday that the Latin American country could cut oil production by 100 thousand barrels per day (bpd) as part of the OPEC+ deal in the next two months. However, according to TASS sources, at the OPEC+ meeting on Thursday Mexico was offered to reduce production by 400 thousand bpd. According to the plan of OPEC+, Mexico was offered to reduce production from the level of 1.75 million b / s, but according to the IEA, in the fourth quarter of 2019, the North American country produced 1.95 million b / s, that is, 200 thousand more b / s. Sources also said that the countries’ negotiations continued even after the Energy Minister of Mexico left them. The agreements reached by OPEC+ are preserved, but with reservations.

As it follows from the OPEC+ draft agreement, which was read by TASS, OPEC+ countries will limit production by 10 million barrels per day – from 43.8 million to 33.8 million barrels per day. The plan assumes that Russia and Saudi Arabia will reduce production by equal quotas – by 2.5 mn barrels per day from the level of 11 mn barrels per day. Thus, their production should reach 8.5 mn barrels per day in May-June.

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